Reply to Tell me how to refuel my savings

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[quote=Anonymous]The key is to set up a budget that allows you to replenish your savings.  In your budget you should include line items for food, for entertainment, for home maintenance.  If you have a home maintenance disaster, you look to see how much you have available to spend.  For many home maintenance issues, you can defer replacement/maintenance until later.  For example, if the dishwasher breaks and you've already replaced the furnace during the winter, and you don't have enough in the home maintenance pot, you defer repairing the dishwasher for 2-3 months until you can afford it from the home maintenance budget and wash dishes by hand.  If the washing machine breaks, you might have to make some trips to the laundromat for a couple of months.  Or you can borrow from other pots of money, like your food budget.  Perhaps you've budgeted $200/month for meals at work (that's less than $10 a day with an average of 22-23 work days per month).  You can bring your lunch for a lot less and save $100 that month.  You can opt to save your entertainment budget for a month to speed up how long it takes.

I have a hard time believing that you had $40K worth of home maintenance that couldn't be delayed for a month or two.  The only things that I can think of that are non-postponable are A/C, furnace, refrigerator and internal (plumbing/electrical).  Otherwise, everything else can wait.  In my first house, I bought a 30-year old house and I had to budget.  I did have a few months where I had to wash dishes by hand when I couldn't afford to get the dishwasher replaced or [/quote]

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